MK Development — a joint venture of well-known Hawaii developers the Kobayashi Group and The MacNaughton Group — is purchasing six acres in Kakaako from Kamehameha Schools for an undisclosed price with plans to develop two luxury mixed-use residential projects totaling about 500 units along the mauka side of Ala Moana Boulevard, a source close to the situation tells Pacific Business News.

An Office Max store and the Cutter Mazda dealership are seen on Ala Moana Boulevard in Honolulu. The two blocks, owned by Kamehameha Schools, are to be developed by a joint venture of the Kobayashi Group and The MacNaughton Group into luxury condominium towers, a source tells Pacific Business News.

The projects are located on “Block H” and “Block I” within the Kamehameha Schools “Our Kakaako” master plan that proposes seven residential towers with 2,750 units and 300,000 square feet of commercial space on 29 acres on nine city blocks. The two parcels are bounded by Ala Moana to the south, Auahi Street to the north and Cooke Street to the west and stretches nearly to Ward Avenue to the east.

An official announcement about these projects, whose units will likely have sweeping views of the Pacific Ocean, is expected soon.

Currently, a Cutter Mazda automobile dealership and service center as well as an Office Max are on located the two parcels, which are separated in the center by Koula Street.

The Hawaii Community Development Authority, which oversees the redevelopment of Kakaako, still needs to approve these projects, which expect to start the sales process in the fall of 2015.

Prices for the units have not been set, but the condominium towers are expected to have commercial tenants such as shops and restaurants on the ground floors, similar to the Hokua condominium, another one of MK Development’s projects, which has Tango Contemporary Cafe and Panya Bistro & Bakery.

MK Development is close to selecting an architect and design partners for the projects, which are expected to attract both the international and Hawaii markets, the source said.

The Honolulu-based development team, which was formed in 2001, is no stranger to developing luxury mixed-use condo projects. Besides Hokua, it has also developed Capitol Place in Downtown Honolulu and is in the process of building One Ala Moana atop Nordstrom’s parking garage at Ala Moana Center.

Representatives from MK Development could not immediately be reached for comment.

Kamehameha Schools, through a spokeswoman, previously told PBN in an email that it did not have any more information on the towers planned for the mauka land along Ala Moana Boulevard, other than that those blocks have been designated within its master plan for future luxury housing.

“They will complement other fee simple and rental projects in ‘Our Kakaako,’” she said.

These newest condo plans are among at least 15 condo projects that include the more than 4,000 units planned for the so called “Third City” of Kakaako, which includes for-sale and rental options.

HAWAII AMERICANA REALTY

For the past 14 years, Mark G. Howard has practiced his skills as a licensed Realtor in Santa Fe, New Mexico, Las Vegas, Nevada and now Principal Broker & President of 'Hawaii Americana Realty', in Honolulu, Hawaii. He has gained a competitive edge in the real estate market by earning his status as an Accredited Buyer’s Representative (ABR).